"When it comes to turning these boats back around it would be sending Indonesian-flagged boats with an Indonesian crew back to the Indonesian port from which they've left," he told Sky News.

"There's absolutely nothing stopping that. We don't need a formal arrangement with the Indonesians to do that."

But border protection commander Rear Admiral David Johnston warned there were risks involved in turning back refugee boats to Indonesia.

He said passengers could, as they have in the past, sabotage their vessels to avoid being turned around or threaten to harm themselves.

In 2001, the Howard government turned back four boats to Indonesia.

Seven other attempts were abandoned because of riots, fires or threats of violence towards Royal Australian Navy personnel, including one involving the vessel in the "children overboard" controversy in 2001.

Indonesia's ambassador to Australia, Nadjib Riphat Kesoema, recently ruled out any collaboration between the two nations to send people back to Indonesia.

The latest boat tragedy comes as Australian authorities on Saturday intercepted another vessel with 130 people on board near Christmas Island.